The model of the market for loanable funds shows that an, Business Economics

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The model of the market for loanable funds shows that an

The model of the market for loanable funds shows that an investment tax credit will cause interest rates and investment to rise. Yet our model of how investors behave claims that higher interest rates lead to lower investment. How can these two opposing statements be reconciled?

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Business Economics: The model of the market for loanable funds shows that an

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